DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT

Solid and Hazardous Waste Commission
Hazardous Materials and Waste Management Division
6 CCR 1007-2

Statement of Basis and Purpose
 and Specific Statutory Authority for

Amendment to the Regulations Pertaining to Solid Waste Sites and Facilities (6 CCR 1007-2, Part 1) – Section 10.12 (Waste Tire End Users Fund). 

(Adopted by the Solid and Hazardous Waste Commission on November 16, 2021)

Basis and Purpose
	
I.	Statutory Authority

Section 30-20-1401(2), C.R.S. gives the Solid and Hazardous Waste Commission (the commission) the authority to promulgate waste tire regulations in order to implement and enforce Section 30, Article 20, Part 14, C.R.S. 

Section 30-20-1405, C.R.S. requires the commission to annually set the amount of the per-ton monthly rebate paid to end users and haulers of waste tires.

II.	Purpose of revised regulations:
	
The purpose of the revised regulations is to update the waste tire end user quarterly rebate amount for calendar year 2022 based on the criteria set forth in 30-20-1405  (4) C.R.S. 

The commission shall annually set the amount of the rebate, by rule, on a per-ton basis, and the department shall pay the set rebate amount for each ton of qualified tire-derived product. The commission shall calculate the rebate to equal, but not exceed, the amount of the anticipated income transferred into the fund during each succeeding twelve-month period. The department is required to allocate the rebates based on three tiers of end uses.  

Tier 1: Full rebates going to crumbed rubber end uses and end uses that completely destroy the waste tire for the purpose of energy recovery or other clean technologies as defined and approved by the commission by rule;
Tier 2: Fifty percent of the full rebate going to end uses such as molded products and rubber mulch; and
Tier 3: Twenty-five percent of the full rebate going to tire bale end uses and end uses for alternative daily cover and tire-derived aggregate that meet the ASTM standard D6270.

The proposed regulations sets the 2022 per ton waste tire end user rebate rates as follows:

A.	Tier 1:  $80 per ton; 

B.	Tier 2:  $40 per ton; 

C.	Tier 3:  $20 per ton; and 

D.	Waste Tire Hauler: $20 per ton. 

Discussion of Regulatory Proposal

The commission determined the per ton rate for the three tiers and the Waste Tire Hauler rebate based on the current balance in the End Users Fund and participation in the program from calendar year 2020 and 2021. The commission believes the current balance is higher than anticipated due to the following factors:

1.	Forecasting was done prior to Covid outbreak, which impacted normal business operations of the applicants and resulting in less requests for end user funds than anticipated.
2.	Sweeping of fund balance by the state legislature in July 2020 which delayed the scheduled start of the program. 
3.	Compliance status of some of the applicants, lowering participation in the program. 
4.	A requirement that twenty-five percent of the expected annual rebate amount be held in reserve before paying the first quarterly rebate.  

The commission used this information to determine per-ton rates that would provide rebates to applicants for their tire-derived products to be competitive with non-waste tire products and to create more participation in the program to help with the state’s waste tire recycling rates. 

The commission is proposing to increase the end user fund rebate rates based on the existing balance in the fund, a projected increase in demand for end user rebate rates compared to 2021, and the projected funds available for 2022. 

	Description of Local Government Involvement in the Stakeholder Process 
	
	Executive Order D 2011-005 (EO-5), “Establishing a Policy to Enhance the Relationship between State and Local Government” requires state rulemaking agencies to consult with and engage local governments prior to the promulgation of any rules containing mandates.  The Department completed an EO-5 Internal Communication Form – Conception Phase that was transmitted to local governments. These regulations would impact any county or municipality that are a Waste Tire Hauler, Waste Tire Monofill, Waste Tire Collection Facility, and/or a Waste Tire End User.

Issues Encountered During Stakeholder Process: 

A stakeholder asked about who is eligible for the waste tire hauler rebate. The statute and parallel provision of the solid waste regulations limits rebate eligibility of Waste Tire Haulers to only those who are registered as an End User in addition to being a registered Waste Tire Hauler and only for waste tires originating from rural counties. The waste tires must be hauled from a rural county (less than 60,000 residents) to the End User facility. The applicant must provide proof that the waste tires that were hauled from the rural county were beneficially end used. 

Regulatory Alternatives

	No other regulatory alternatives were evaluated.

Cost/Benefit Analysis

A cost-benefit analysis will be performed if requested by the Colorado Department of Regulatory Agencies.